Meta Platforms is planning staff reductions as part of a 10 percent cost reduction goal, reports say. Stalled growth and increased competition are among the reasons cited by 20 additional tech firms who have since the summer been contracting their workforce. In the case of Meta, it appears to also be a matter of reallocating funds so as not to drastically scale back its metaverse ambitions. Departments there are being reorganized and affected workers are being encouraged to apply for other jobs within the company. Word is Alphabet’s Google is also seeking to fill vacancies by reassigning existing staff. Continue reading Google, Meta Among Big Tech Firms Cutting Costs and Staff

Governor Gavin Newsom signed the California Age-Appropriate Design Code Act into law last week, making his state the first in the nation to adopt online child safety measures. The bipartisan legislation requires online platforms to default to privacy and safety settings that protect children’s mental and physical health. The new law, cosponsored by Assemblymembers Buffy Wicks (D-15th District) and Jordan Cunningham (R-35th District), prohibits companies that provide online services and products in California from using a child’s personal information and forbids collecting, selling, or retaining a child’s geolocation, among other things. Continue reading California Governor Signs Online Child Protection Bill into Law

Netflix has reportedly moved the timeline for launching its ad-supported subscription tier to November 1 in an effort to get to market before the December 8 debut of the Disney+ tier with advertising. Over the summer, Netflix told investors it planned to launch the lower-priced alternative tier “around the early part of 2023,” a strategy that appears to have shifted, with a Q4 rollout that is expected to include the U.S., Canada, Germany, France and the UK. The streamer is also said to be discussing a pricey $65 CPM rate per thousand impressions. Netflix characterized the conjecture as “speculation.” Continue reading Netflix Reportedly Bumping Up Ad-Tier Launch to November

Snap Inc. announced plans to cancel ongoing projects such as Snap Originals, in-app multiplayer games, HTML mini-apps built by outside developers, and future development of its Pixy selfie-camera drone — all part of a corporate restructuring that will include laying off about 20 percent of its more than 6,400 employees. The company, which operates the popular social media app Snapchat, is taking cost-cutting measures as it faces growing competition from TikTok and other rivals and challenges to its core digital advertising business. Continue reading Snap Canceling Projects and Cutting 20 Percent of Workforce

Tech companies are giving consumers more control over the type of advertising they see online, a feature that customers frequently request. Meta Platforms, Mozilla, Google and the Digital Advertising Alliance (DAA) have been actively exploring ad-blocking options. Now ByteDance’s TikTok and others are joining in. While the increased control may make some consumers happy, the effect it will have on Big Tech’s already ailing ad sector is as yet undetermined. While the various techniques let consumers limit exposure to ads, proponents argue the ultimate effect will be positive, ensuring ads are served to an interested audience. Continue reading Technology Firms Offer Users More Control Over Advertising

YouTube is the most popular social media platform among teens, with 95 percent of 13- to 17-year-olds saying they use the service, according to the Pew Research study “Teens, Social Media and Technology 2022.” TikTok is currently ranked second, with a 67 percent teen buy-in, according to the study, followed by Instagram (62 percent) and Snapchat (59 percent). While neither YouTube nor TikTok were on the Pew ranking when the previous survey was released in 2015, Facebook fell precipitously — from first to fifth place — with 32 percent of teens onboard in 2022, versus 71 percent seven years ago. Continue reading Pew: YouTube Most Popular with Teens, Followed by TikTok

Alphabet had a rocky second quarter with revenue of $69.69 billion, up 13 percent from the same period in 2021, though net income was down 14.6 percent to $16 billion. It was Alphabet’s slowest growth rate since Q2 2020, when COVID-19 wreaked havoc on the economy. In a contracting 2022 advertising market, Alphabet posted 12 percent ad growth, totaling $56.3 billion for the quarter ended June 30 versus the same period the previous year. Ad growth was down substantially over the 69 percent increase of Q2 2022, but increased nonetheless where others are declining. Continue reading Google’s Ad Growth Slows While Search Exceeds Projections

Twitter’s second quarter revenue of $1.18 billion underperformed 2021 by only one percent but fell short of estimates by more than 10 percent, disappointing Wall Street, which projected revenue of $1.32 billion for the period. Advertising crept up two percent, to $1.08 billion, but overall Twitter had a quarterly net loss of $270 million, largely attributed to recessionary headwinds and uncertainty about Elon Musk’s proposed takeover. In its earnings report, Twitter said its lawsuit against Musk has been granted an expedited trial for October 2022. Continue reading Ad Market and Musk Credited for Twitter’s Missed Earnings

U.S. tech execs are experiencing app envy, with companies from Uber to PayPal and billionaires Elon Musk and Jack Dorsey setting their sights on building one-size-fits-all “super apps” to rival Tencent’s WeChat in China and SoftBank’s LINE in Japan. Where typical apps are built to do one thing really well, so-called super apps are generalists, which in theory means people will use them more often. Spotify and Snap have also expressed interest in super solutions, which have been popular in Asia since 2020 and are sparking new interest in the West. Continue reading U.S. Firms Chase China’s WeChat in Bid to Build Super Apps

Snap Inc. is beginning the rollout of Snapchat+,  a subscription tier promising “exclusive, experimental and prerelease features” as well as priority support for a monthly fee of $3.99. Targeting “our most passionate users,” Snapchat+ will be available at launch in the U.S., Canada, the UK, France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates, with plans for further expansion as the tier evolves. The Snapchat+ launch follows similar moves by Twitter, with Twitter Blue, and Meta Platforms, with Facebook Subscriptions as social platforms seek to supplement advertising with additional revenue streams. Continue reading Snapchat+ Subscription Tier Launches in Limited Territories

Snap’s investor warning of slow growth ahead has sent shivers through the social media sector, the digital advertising industry, and Wall Street. Though the general messaging that supply chain issues coupled with the war in Ukraine is bad for business is not exactly news, Snap CEO Evan Spiegel’s message that “the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month” hit a nerve. Snap lost 43 percent of its market cap on Tuesday, with the social media sector showing signs of drag and analysts forecasting trouble ahead for ad-supported media. Continue reading Dire Snap Forecast Dampens Social Media, Digital Ad Sectors

A 13-year bull run in technology startup investments has come to a halt, according to recent reports that describe a new climate of layoffs and skepticism that has resulted in valuations dropping and an exodus of funds. Rising interest rates, a palliative against 8 percent-plus inflation, have affected the investment outlook, making startups and private tech companies look overpriced. Even established public tech firms are affected, with Meta Platforms and Amazon dropping more than 30 percent this year, while Apple, Microsoft and Alphabet have logged 20 percent declines. Netflix has fallen by 69 percent. Continue reading Tech Sector Takes Hit as Startups and Stalwarts Feel the Pain

Appearing at the NewFronts, Snap unveiled a new program in conjunction with celebrity greeting app Cameo as well as a new advertising initiative called Snap Promote and some new original programs. Snapchat creators will have the opportunity to team on short-form video ads with the 45,000-plus actors, athletes, musicians and influencers. The new Snap x Cameo Advertiser Program venture — an expansion of the Creator Marketplace Snap launched last year to increase monetization opportunities — was created by Cameo for Business and built by Snap. Continue reading Snap Teams with Cameo and Introduces Its New Ad Initiative

Snap announced a multi-year partnership with Live Nation that centers on its augmented reality initiative. Fans attending select Live Nation concerts will be able to access custom AR experiences created on the Snap AR developer platform “with help from Snap’s creative studio Arcadia.” At the Snap Partner Summit the company also unveiled new tools for AR shopping and a Director Mode for creators. A Lens Cloud feature lets clients store AR content on Snap servers for dynamic multi-user distribution. Also unveiled, the new Pixy “flying camera” that makes selfies a breeze. Continue reading Snap Reveals Director Mode, Drone Camera, Live Nation Deal

Snap has grown daily users to 332 million, an 18 percent increase in Q1 according to an earnings report. The January through March period reflects a 38 percent year-over-year revenue increase, but also documents a net loss of $360 million. The deficit — attributed to digital advertising circumstances including Apple’s new privacy policies, the war in Ukraine and the effects of inflation — comes on the heels of Snap’s first-ever quarterly profit in Q4 2021. The Q1 results reflect “underlying momentum” against “a challenging operating environment,” said Snap CEO Evan Spiegel. Continue reading Snap Adds Users, Boosts Revenue, Posts $360 Million Loss